NEW YORK–(BUSINESS WIRE)–The InfraCap MLP ETF (NYSE: AMZA) has announced that it is adopting a monthly dividend policy, replacing its traditional quarterly schedule, which had been in place since the fund’s 2014 inception.
The next dividend is scheduled to be declared on February 20th and paid on February 28th. Dividends are planned, but not guaranteed, for each subsequent month. The anticipated monthly dividend rate is $0.11 per share ($1.32 per share on an annualized basis). This action is being taken in order to align AMZA’s distributions to shareholders more closely with its distributable cash flow.
Edward F. Ryan, Chief Financial Officer of Infrastructure Capital Advisors, LLC, commented: “Many AMZA shareholders utilize the fund as a part of an income-seeking strategy. Such investors have expressed a strong preference for consistent, monthly distributions.
“At the new payment schedule and rate,” Ryan continued, “the fund is positioned to make substantial cash distributions to its shareholders while minimizing potential net capital distributions. The new dividend rate is set at a level that we think can be consistently covered by the fund’s distributable cash flow. It was determined after consideration of the average yield of midstream MLP sector stocks and the fund’s use of leverage and option strategies to generate an enhanced level of income for distribution.”
Investors should note that a portion of the fund’s distributions may be categorized as return of capital. For more information about AMZA’s distribution policy, its 2018 distribution calendar, or tax information, please visit the fund’s website at www.virtusetfs.com.
ABOUT INFRASTRUCTURE CAPITAL ADVISORS, LLC
Infrastructure Capital Advisors, LLC (ICA) is an SEC-registered investment advisor that manages exchange traded funds and a series of hedge funds. The firm was formed in 2012 and is based in New York City. ICA seeks total-return opportunities in key infrastructure sectors, including energy, real estate, transportation, industrials and utilities. It often identifies opportunities in entities that are not taxed at the entity level, such as master limited partnerships (“MLPs”) and real estate investment trusts (“REITs”). It also looks for opportunities in credit and related securities, such as preferred stocks. Current income is a primary objective in most, but not all, of the company’s investing activities. The focus is generally on asset-intensive companies that generate and distribute substantial streams of free cash flow. For more information, please visit www.infracapfunds.com.
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MLP Interest Rates: As yield-based investments, MLPs carry interest rate risk and may underperform in rising interest rate environments. Additionally, when investors have heightened fears about the economy, the risk spread between MLPs and competing investment options can widen, which may have an adverse effect on the stock price of MLPs. Rising interest rates may increase the potential cost of MLPs financing projects or cost of operations, and may affect the demand for MLP investments, either of which may result in lower performance by or distributions from the Fund’s MLP investments.
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You should consider the fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact ETF Distributors LLC at 1-888-383-4184 or visit www.infracapmlp.com to obtain a prospectus which contains this and other information about the fund. The prospectus should be read carefully before investing.
Virtus ETF Advisers, LLC serves as the investment advisor and Infrastructure Capital Advisors, LLC serves as the sub-advisor to the Fund.
The Fund is distributed by ETF Distributors LLC, an affiliate of Virtus ETF Advisers, LLC.
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